Accelerated Internationalization by Indian Service Sector Multinational Enterprises: Development of a Fast Capability Acquisition Model

Abstract

Traditional international business theories do not adequately explain the rapidness of cross border acquisitions by emerging market enterprises (EMNEs). While international business literature acknowledges that EMNEs acquire resources and capabilities to accelerate their competitive advantage, there is no formal conceptual structured model that delineates the same. Hence, addressing this gap, this paper introduces the ‘Fast Capability Acquisition Model’ or FCAM which extends seminal internationalization theories that do not fully conceptualise the accelerated internationalization of Indian multinational enterprises by leveraging cross border acquisitions in developed economies towards competitive advantage.

Keywords: Indian Multinational enterprises/companies (IMNEs), Outward Foreign Direct Investment (OFDI), Resources and Capabilities, Resource based view (RBV), Cross Border M&As (CBAs), Strategic Management